Avengers Assemble has been a boon for cinema operators, taking more
than $40m (£25m) at the box office since its release. However, it is the
second half of the year that is looking good for Cineworld.

The cinema operator said that total revenues had risen by 6.3pc in the 19 weeks to May 10, with the wet bank holiday providing a boost.

Box office receipts rose 8.6pc – with customers attracted by the removal of the group’s booking fee and a 10pc discount for tickets booked online. Retail spend was up 3.9pc, with the boost coming from the higher number of cinema goers, as people are still watching their spending.

The “other income” category saw revenues fall by 10.1pc. This was due to the removal of the booking fee, lower 3D glasses sales and advertising being “modestly lower” than the equivalent period of last year.

First-half revenues are expected to be the same as last year, with the second-half release schedule looking strong, despite competition from the London Olympics and the European Championships.

In the second half, 3D films that will be released include The Amazing Spiderman, Ice Age 4 and The Hobbit.

Trading on a December 2012 earnings multiple of 10.5 times, falling to 9.7 next year, the valuation does not look overstretched. The move to give discounts for cinemagoers who register on the MyCineword website is likely to help boost attendance, which should help profits.

Questor expects the shares will appreciate over time as the company grows – with an expansion into Europe possible over time. The company also offers attraction for income seekers, as it has an impressive yield of 5.6pc rising to 5.9pc.

The shares were first recommended at 120p on March 15, 2009, and were last tipped at 215¼p on March 18. The shares are now at the same level compared with a market down 6pc. The view remains: buy for income and growth.